It is indeed a great privilege for me to present the report of the performance of yourCompany for the year 2015-16. It has been a year when the Company has crossed severalmilestones. In terms of profitability BPCL has once again delivered a stupendousperformance by achieving an all-time high profit after tax of Rs. 7431.88 crores. Thesephenomenal results have enabled the Company to meet the stringent criteria set by theGovernment of India for classification as a Maharatna Company. Given the dedication andcommitment of every member of the BPCL family I am sure that BPCL will keep deliveringoutstanding results in the years ahead.
The record profits have been the result of strong all-round performance. The refineriesat Mumbai and Kochi have delivered robust gross refining margins. The marketing businessunits have more than held their own in a highly competitive environment with sales volumegrowing at 6% over the previous year. BPCL's subsidiary company Numaligarh RefineryLimited registered an all-time high profit after tax of Rs. 1224.35 crores. For the firsttime since the commissioning of the Bina Refinery Bharat Oman Refineries Limited endedthe year in the black with a profit after tax of Rs. 365.78 crores.
The Company's earnings per share crossed the 3 digit mark and stood at Rs. 102.78 pershare. The Board has proposed the highest ever dividend in the Company's historyincluding interim dividend which has already been paid. You would have also received theBonus Shares that were issued by capitalizing a part of the Company's Reserves. Thecapital market has given its vote of confidence with the market capitalization crossingRs. 87000 crores.
While the operational and financial results achieved are indeed heartening our abilityto incur substantial amounts of capital expenditure and execute high value complexprojects in a timely and cost effective manner is a matter of great pride. The IntegratedRefinery Expansion Project (IREP) at Kochi Refinery which is by far the largest singleproject to be undertaken by the Company is being commissioned on schedule. Work on thePropylene Derivatives Petrochemicals Project at Kochi Refinery has commenced. During theyear the capital expenditure of the BPCL group was Rs. 11360 crores which is 14% morethan the previous year. All this gives immense confidence that the BPCL group will be ableto deliver on the ambitious capital expenditure plans for the next five years involvingan outlay of around Rs. 100000 crores.
BPCL's wholly owned subsidiary company Bharat PetroResources Limited (BPRL) continuesto take rapid strides and has joined hands with Oil India Limited and Indian OilCorporation Limited to acquire stakes in a couple of key assets in Russia. This willcontribute significantly towards the country's efforts in enhancing its crude oilsecurity apart from enabling BPRL to commence revenue generation in a significant manner.
The year gone by was memorable as BPCL celebrated its 40th Foundation Dayin January 2016. The Ruby Anniversary is an important milestone and provides a perfectopportunity to look back with great satisfaction on all that we have achieved andrededicate ourselves to excelling in the years ahead. We have reached our present positionthanks to the hard work and dedication of the entire BPCL team. The contribution of allour partners cannot be overstated. It is this unstinted support and unlimited energy thatpropels the Organisation to transcend boundaries and create lasting value.
We continue to remain steadfast in our commitment to society. To commemorate theoccasion of the Ruby Anniversary we have institutionalized the 'Energising BharatAwards' to felicitate individuals who have selflessly made a significant contribution tosociety in the fields of primary education skill development water conservation ruralhealth and women's empowerment. These awards were presented by the Hon'ble Minister ofState (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan during thecelebrations in Mumbai.
BPCL continues to support the initiatives undertaken by the Ministry of Petroleum &Natural Gas to promote economical easily accessible clean and safe cooking fuel acrossthe country especially in the rural pockets. The PAHAL (Pratyaksh Hanstantarit Labh)Scheme launched in November 2014 to transfer the LPG subsidy directly to the bank accountof the consumer has been recognized by the Guinness Book of World Records as the largestcash transfer programme (households). Similarly the '#GiveItUp' campaign appeal by theGovernment of India towards nation building has made considerable progress with over 104lakh customers across the country having surrendered their LPG subsidy entitlement. Theseinitiatives have substantially reduced the subsidy burden on the Government and enabled itto use the money for providing LPG connections to families who are below the poverty line.The Company has also been in the forefront of the other flagship initiative introduced bythe Government of India viz. the Pradhan Mantri Ujjwala Yojana (PMUY). The schemelaunched on 1st May 2016 by the Hon'ble Prime Minister aims to provide free LPGconnections to women belonging to below poverty line households. The initiatives not onlyenhance the quality of life in rural areas but also take India a step closer to being adeveloped nation.
The Organisation is constantly exploring new opportunities which can contribute towardsenhancing shareholder value and meet emerging customer needs. We have recently launcheddiverse non-fuel initiatives with offerings which are customized to meet the specificneeds of identified customer segments like the rural markets urban travellers fleetowners etc. These are also expected to significantly augment fuel sales. The pilotsundertaken in select rural locations have given encouraging results. I am sure that theseinitiatives will give BPCL a definite competitive edge.
BPCL has consistently been creating value for all its stakeholders. It has emerged as atruly comprehensive player in almost all facets of business. In the coming years BPCLplans to invest heavily in infrastructure related projects to support the growing energydemand in the Indian economy which is poised to become one of the fastest growingeconomies in the world.
I would like to conclude by acknowledging the steadfast support of BPCL's entireecosystem. I take this opportunity to thank each one of you for your resolute belief inour competencies. BPCL will continue to create value and enhance its performance to levelswhich hitherto have not been reached. As I prepare to lay down office by the end ofSeptember I remain confident that the Company has all the ingredients necessary tocontinue fuelling the dreams and aspirations of all its stakeholders just as it has donein the last four decades.
Chairman & Managing Director